Company Registration No. 06996700 (England and Wales)
TARGET HEALTHCARE INTERNATIONAL LIMITED
PREVIOUSLY KNOWN AS IMPACT HEALTH LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
TARGET HEALTHCARE INTERNATIONAL LIMITED
CONTENTS
Page
Strategic report
2 - 3
Balance sheet
4
Notes to the financial statements
5 - 12
TARGET HEALTHCARE INTERNATIONAL LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mrs G Grant
(Appointed 3 March 2022)
Mr DK Patel
Company number
06996700
Registered office
Unit 8
Thames Road
Crayford
Dartford
England
DA1 4RF
Auditor
Consilium Audit Limited
169 West George Street
Glasgow
Scotland
G2 2LB
TARGET HEALTHCARE INTERNATIONAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
The directors present the strategic report for the year ended 31 December 2022.
Principal activities
The principal activity of the Company in the period under review was the manufacture and supply of unlicenced medicines.
Review of business
The directors consider the results of the financial year and the position of the company at the year-end to be satisfactory. The company will continue to seek every opportunity to increase profitable turnover. The directors are committed to long term creation of shareholder value by increasing the company's market share through organic growth and seeks opportunities for growth through business expansion.
On 3rd March 2022 Impact Health Limited was acquired by Target Healthcare Group Limited. The acquisition provided Impact Health with a required cash injection and working capital support. The business has grown steadily in the subsequent period due to the improved cash flow position and stable supply chain.
Principal risks and uncertainties
The management of the business and the execution of the company's strategy are subject to several risks.
The key business risks and uncertainties affecting the company is government regulation. With the delivery of Brexit still presenting uncertainty and operational challenges, the director remains vigilant as to the opportunities and threats which may arise.
Environment
The company recognises it responsibility to promote the use of recycled materials and to conduct its operations whilst minimising environmental impacts. The director's continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible.
Health and Safety
The company is committed to achieving the highest practicable standards in health and safety management and strives to make its sites and offices safe environments for employees and customer alike.
Human resources
The company's most important resource is its people, their knowledge and experience is crucial to meeting customer requirements. Retention of key staff is critical, and the company has invested increasingly in employment training and development and has introduced appropriate incentive and career progression. arrangements.
Financial risk management
The company's operations expose it to a variety of financial risks that include the effects of changes in price risk, liquidity risk, foreign currency risk and Interest rate risk.
Liquidity risk
The company actively maintains a mixture of long term and short-term debt finance that is designed to ensure the company has sufficient available funds for operations and planned expansions.
Foreign currency risk
While the greater part of the company's revenues and expenses are denominated in sterling, the company is exposed to some foreign exchange risk in the normal course of business. While the company has not used financial instruments to date to hedge foreign exchange exposure, this position is kept constantly under review.
Interest rate risk
The company has interest-bearing liabilities. The interest-bearing liabilities include bank loans on which interest charged varies in line with the banks base rate. The company has a policy of maintaining debt at a competitive rate to ensure a reasonable degree of certainty over future interest cash flows. The directors will revisit the appropriateness of this policy should the company's operations change in size of nature.
TARGET HEALTHCARE INTERNATIONAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
Mrs G Grant
Director
19 September 2023
TARGET HEALTHCARE INTERNATIONAL LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 4 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
4
15,767
Tangible assets
5
44,012
80,886
59,779
80,886
Current assets
Stocks
314,625
364,687
Debtors
6
948,799
208,786
Cash at bank and in hand
298,826
210,994
1,562,250
784,467
Creditors: amounts falling due within one year
7
(2,046,516)
(840,466)
Net current liabilities
(484,266)
(55,999)
Total assets less current liabilities
(424,487)
24,887
Creditors: amounts falling due after more than one year
8
(350,000)
(450,000)
Provisions for liabilities
9
(191)
Net liabilities
(774,487)
(425,304)
Capital and reserves
Called up share capital
10
100
100
Profit and loss reserves
(774,587)
(425,404)
Total equity
(774,487)
(425,304)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 19 September 2023 and are signed on its behalf by:
Mrs G Grant
Director
Company Registration No. 06996700
TARGET HEALTHCARE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -
1
Accounting policies
Company information
Target Healthcare International Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 8, Thames Road, Crayford, Dartford, England, DA1 4RF. The company's registration number is 06996700.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention.
1.2
Going concern
The company is dependent on the ongoing support of Target Healthcare Group Limited, the ultimate parent company, to provide funds to meet its debts and other financial obligations as they fall due. Target Healthcare Group Limited has pledged its support to the company to enable it to continue in operational existence for the foreseeable future. In view of this, the directors are satisfied that it is appropriate to prepare the accounts on a going concern basis.true
1.3
Reporting period
These financial statements cover the 12 month period to 31 December 2022, with the comparative figures covering the 9 months to 31 December 2021.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
20% straight line
TARGET HEALTHCARE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 6 -
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
20% straight line
Fixtures and fittings
33.3% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Stocks
Inventories are stated at lower of cost and net realisable value. In determining the cost of raw materials, consumables and goods purchased for resale, the weighted average purchase price is used. For work in progress and finished goods cost is taken as production cost, which includes an appropriate proportion of attributable overheads.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
TARGET HEALTHCARE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 7 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
TARGET HEALTHCARE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 8 -
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Operating loss
2022
2021
Operating loss for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
38,062
32,248
Amortisation of intangible assets
1,433
-
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
13
17
4
Intangible fixed assets
Other
£
Cost
At 1 January 2022
Additions
17,200
At 31 December 2022
17,200
Amortisation and impairment
At 1 January 2022
Amortisation charged for the year
1,433
At 31 December 2022
1,433
Carrying amount
At 31 December 2022
15,767
At 31 December 2021
TARGET HEALTHCARE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
5
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2022
169,390
36,233
205,623
Additions
1,188
1,188
At 31 December 2022
169,390
37,421
206,811
Depreciation and impairment
At 1 January 2022
94,236
30,501
124,737
Depreciation charged in the year
33,877
4,185
38,062
At 31 December 2022
128,113
34,686
162,799
Carrying amount
At 31 December 2022
41,277
2,735
44,012
At 31 December 2021
75,154
5,732
80,886
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
535,118
98,131
Corporation tax recoverable
213
80,127
Amounts owed by group undertakings
175,625
Other debtors
237,570
30,528
948,526
208,786
Deferred tax asset
273
948,799
208,786
7
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans
100,000
50,000
Trade creditors
645,184
485,820
Amounts owed to group undertakings
648,759
Taxation and social security
248,183
10,702
Other creditors
404,390
293,944
2,046,516
840,466
TARGET HEALTHCARE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
8
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
350,000
450,000
The bank loan is secured by a fixed charge over the freehold and leasehold property.
9
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2022
2021
2022
2021
Balances:
£
£
£
£
Accelerated capital allowances
-
191
273
-
2022
Movements in the year:
£
Liability at 1 January 2022
191
Credit to profit or loss
(464)
Asset at 31 December 2022
(273)
10
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was qualified and the auditor reported as follows:
TARGET HEALTHCARE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
11
Audit report information
(Continued)
- 11 -
We have audited the financial statements of Target Healthcare International Limited (the 'company') for the year ended 31 December 2022 which comprise , the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for qualified opinion
The Company was exempt from audit in the period to 31 December 2021 and we were not appointed as auditor until after 31 December 2021 and thus did not observe the counting of physical inventories at the end of the period to 31 December 2021. We were unable to satisfy ourselves by alternative means concerning these inventory quantities, which were included in the balance sheet at £364,687, by using other audit procedures.
Consequently, we were unable to determine whether any adjustment to this amount at 31 December 2021 was necessary or whether there was any consequential effect on the cost of sales for the year ended 31 December 2022.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
The senior statutory auditor was David Holt and the auditor was Consilium Audit Limited.
12
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2022
2021
£
£
83,975
153,475
13
Related party transactions
TARGET HEALTHCARE INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
13
Related party transactions
(Continued)
- 12 -
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
No further transactions with related parties were undertaken such as are required to be disclosed under the provisions of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
14
Ultimate controlling party
During the period to 3 March 2022, there was no ultimate controlling party.
From 4 March 2022, the Company became a wholly owned subsidiary of Target Healthcare Group Limited. The company is included within the consolidated financial statements of Target Healthcare Group Limited, available at the registered address 8 Redwood Crescent, East Kilbride, Glasgow, Scotland, G74 5PA.
The ultimate parent company is Target Healthcare Group Limited, a company registered in the Isle of Man. No consolidated accounts are required at this level.
The ultimate controlling party is L Campbell.
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